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pontesud.com > Blog > Economy > Laos to upgrade national road to enhance Thailand-Vietnam-China trade link
EconomyNewsUncategorized

Laos to upgrade national road to enhance Thailand-Vietnam-China trade link

Chiquera Swanepoel
Last updated: June 5, 2025 12:24 pm
Chiquera Swanepoel
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Laos: PontaSud – Chiquera Swanepoel

Laos will begin upgrading National Road No. 12 in late 2025. The project, expected to take around 30 months, aims to improve the 147-kilometer highway that links Thailand, Vietnam, and southern China.

Construction will start after the rainy season in 2025, beginning from Thakhek district, near Thailand’s Nakhon Phanom border checkpoint. The road will pass through Yommalath and Boualapha districts and end at the Na Phao border checkpoint, connecting to Vietnam’s Cha Lo checkpoint in Quang Binh Province.

On 22 May, the Lao Ministry of Public Works and Transport signed contracts with the construction company. The project is split into two parts: the first covers the 61.5 kilometers from Thakhek to Yommalath Junction; the second covers the remaining 86 kilometers to Na Phao.

Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA) is funding the project with a low-interest loan of THB 1.8 billion (about USD 49.3 million) at 1.75 percent interest annually. The loan comes with a 30-year repayment period and a seven-year grace period.

The agreement requires at least half of the project’s materials and equipment to come from Thailand, with Thai contractors and supervisors leading the work.

When finished, National Road No. 12 will meet Asian Highway standards and improve transport and border facilities along the route. The road supports trade and travel between Thailand, Laos, Vietnam, and southern China, especially connecting to Nanning City in Guangxi Province.

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